Stock Analysis

Wonik Ips Leads 3 KRX Stocks Estimated To Be Trading Below Fair Value

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Over the last 7 days, the South Korean market has dropped 5.7%, and it is down 3.9% over the past year, though earnings are forecast to grow by 29% annually. In this context, identifying undervalued stocks like Wonik Ips can present attractive opportunities for investors looking to capitalize on potential future growth at a discount.

Top 10 Undervalued Stocks Based On Cash Flows In South Korea

NameCurrent PriceFair Value (Est)Discount (Est)
APR (KOSE:A278470)₩295000.00₩523654.9543.7%
HD Korea Shipbuilding & Offshore Engineering (KOSE:A009540)₩173500.00₩305978.9643.3%
Lutronic (KOSDAQ:A085370)₩36700.00₩63217.9441.9%
Oscotec (KOSDAQ:A039200)₩35600.00₩65583.1445.7%
Intellian Technologies (KOSDAQ:A189300)₩50200.00₩91374.4845.1%
Shinsung E&GLtd (KOSE:A011930)₩1629.00₩2977.0245.3%
Global Tax Free (KOSDAQ:A204620)₩3580.00₩6420.2844.2%
Hotel ShillaLtd (KOSE:A008770)₩44600.00₩82523.1946%
Hd Hyundai MipoLtd (KOSE:A010620)₩97400.00₩171464.9243.2%
Kakao Games (KOSDAQ:A293490)₩16620.00₩29539.2143.7%

Click here to see the full list of 33 stocks from our Undervalued KRX Stocks Based On Cash Flows screener.

Here's a peek at a few of the choices from the screener.

Wonik Ips (KOSDAQ:A240810)

Overview: Wonik IPS Co., Ltd researches, develops, manufactures, and sells semiconductor, display, and solar cell systems in South Korea with a market cap of ₩1.43 billion.

Operations: The company generates revenue from semiconductor, display, and solar cell systems in South Korea.

Estimated Discount To Fair Value: 33.8%

Wonik Ips, trading at ₩29,400, is significantly undervalued based on discounted cash flow analysis with a fair value estimate of ₩44,396.17. Analysts forecast revenue growth at 23.2% per year, outpacing the South Korean market average of 10.3%. Despite a low return on equity forecast (11.5%), the stock is expected to become profitable within three years and has strong earnings growth potential at 90.24% annually. Recent earnings will be reported on August 8, 2024.

KOSDAQ:A240810 Discounted Cash Flow as at Sep 2024

Hotel ShillaLtd (KOSE:A008770)

Overview: Hotel Shilla Co., Ltd operates as a hospitality company in South Korea and internationally, with a market cap of ₩1.69 trillion.

Operations: Hotel Shilla's revenue segments include Travel Retail (₩3.31 trillion) and Hotel & Leisure Sector (₩701.77 billion).

Estimated Discount To Fair Value: 46%

Hotel Shilla Ltd. is trading at ₩44,600, significantly below its estimated fair value of ₩82,523.19 based on discounted cash flow analysis. The company is expected to become profitable within the next three years and has a strong earnings growth forecast of 69.41% annually. Despite slower revenue growth (11.6% per year) compared to peers, it remains undervalued by 46%. Recent private placements raised KRW 132.80 billion through exchangeable bonds with a zero interest rate maturing in 2029.

KOSE:A008770 Discounted Cash Flow as at Sep 2024

Hd Hyundai MipoLtd (KOSE:A010620)

Overview: Hd Hyundai Mipo Co., Ltd. is a South Korean company specializing in the manufacture, repair, and remodeling of ships with a market cap of ₩3.88 trillion.

Operations: The company's revenue segments include Shipbuilding, which generated ₩5.10 billion, and Connection Adjustment, which accounted for -₩0.87 billion.

Estimated Discount To Fair Value: 43.2%

Hd Hyundai Mipo Ltd. is trading at ₩97,400, significantly below its estimated fair value of ₩171,464.92 based on discounted cash flow analysis. The company is forecast to become profitable within the next three years with earnings expected to grow 93.19% annually. Although revenue growth (11.4% per year) is slower than 20%, it surpasses the market average of 10.3%. Recent shareholder and analyst calls have provided positive insights into future profitability and valuation prospects.

KOSE:A010620 Discounted Cash Flow as at Sep 2024

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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